Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • Bell Potter assigns a BUY rating with a target price of AUD 22.80, implying a 10.89% upside.

  • Recently, the company released quarterly results, supported by AUM growth across key business divisions.

  • Simplification Program on track with AUD 30 million in annualised savings already achieved.

Perpetual Limited (ASX:PPT) has received a renewed vote of confidence from analysts, with Bell Potter Securities assigning the investment management group a BUY rating. The recommendation is supported by a target price of AUD 22.80, representing a 10.89% upside from the current trading price of AUD 20.46 (as of 24 July 2025).

This positive outlook follows Perpetual's fourth quarter business update for FY25, which demonstrated growth across all three of its operating divisions: Asset Management, Wealth Management, and Corporate Trust. 

Asset Management Performance

Perpetual's total Assets Under Management (AUM) reached AUD 226.8 billion as of 30 June 2025, up 2.5% from the previous quarter. This growth was largely supported by favourable market movements of AUD 14.6 billion, partially offset by net outflows and currency impacts.

Key asset management brands under the Perpetual umbrella contributed positively:

  • Barrow Hanley recorded AUM growth of 2.8%, supported by inflows in Global Value and Diversified Large Cap Value equity strategies.

  • Pendal Asset Management saw a 4% increase, while J O Hambro Capital Management and TSW posted respective increases of 1.8% and 1.0%, driven by resilient market performance despite currency challenges and minor outflows.

While some boutique strategies faced outflows, Perpetual's diversified asset base helped sustain net positive performance.

Steady Momentum in Corporate Trust and Wealth Management

Perpetual's Corporate Trust division also delivered consistent growth, with total Funds Under Administration (FUA) reaching AUD 1.27 trillion, a 0.7% increase over the previous quarter. This was supported by growth in Debt Market Services and Managed Funds Services, particularly in non-bank RMBS and Custody segments.

Meanwhile, the Wealth Management arm saw its total FUA climb to AUD 21.5 billion, reflecting a 2% increase quarter-on-quarter. The lift was primarily attributed to positive market performance, with net flows remaining flat.

Cost Efficiency and Strategic Outlook

Perpetual reaffirmed its FY25 expense guidance of 3–4% growth and expects gross debt to remain between AUD 740–750 million. The company also noted expected significant pre-tax items in the range of AUD 195–205 million, with further updates pending goodwill and intangible impairment assessments.

The company’s Simplification Program—targeting AUD 70–80 million in annualised cost savings by FY27—has already achieved AUD 30 million in annualised savings by 30 June 2025.